Wednesday, October 23, 2013

ASCAP bill for music licensing fees not a scam

In the last few weeks, the Louisiana Restaurant Association
Communications staff has fielded a number of calls from members who received bills
from ASCAP for playing music.

The most common questions are if they have to pay to
“license” the music they play. They ask, “Do I really have to pay license fees
on the music I am playing in my establishment?” Typically, the answer is “yes.”
The following will help put the issue into perspective.

Q. Why should I pay for playing music to
the public? Legally, a piece of music belongs to the composer who created
it and to the music publisher who markets it. When you use other people’s
property, you have to ask their permission to do so.

Q. What is a “public
performance” of music and what is the “performing right?” A “public performance” is a performance that occurs in a public
place or in any other place where people gather (other than a small circle of a
family or acquaintances). A public performance is also one that is transmitted
to the public; for example, radio or television broadcasts, music-on-hold,
cable television or by the internet. Generally, those who publicly perform
music must obtain permission to do so from either the owner of the music or his
or her representative.

Q. If musicians are playing live music,
aren’t they responsible for paying the public performance fees? People
mistakenly assume that musicians and entertainers must obtain licenses to
perform copyrighted music or that the business where the music is performed can
shift that responsibility to the performers. The law says that all of those who
participate in, or are responsible for, the performance are legally
responsible. Since it is the business owner who obtains ultimate benefit from a
performance, it is the business owner who must obtain the license.Music license fees are just one of the many
costs of doing business.

Q. I’m interested in
having music played in my restaurant. Do I need permission if I am only using
CDs, records, tapes, radio or TV? Yes, you need
permission to play CDs, records, or tapes in your establishment. Permission for
radio or television transmissions in your business is not needed if the
performance is by means of public presentation of TV or radio transmissions.
Eating, drinking, retail and certain other establishments of a certain size may
play public radio and TV signals over a limited number of speakers or TVs if
the reception is not further transmitted (from one room to another, for
example) from the place in which it is received. No admission fee can be
charged.

Q. My establishment is very small. Do I
still need to pay for music licensing? You are required to get a music license
if:

You play video games with music tracks (such as Guitar Hero)

Your establishment is 3,750 square feet or larger (foodservice
or drinking establishment), plays the radio or TV, and (has at least one
of the following)

Has more than four TVs total, or more than four TVs in any
one room

Has any TV with a diagonal screen size greater than 55
inches

Any of the audio portions of the audiovisual performance is
communicated by means of more than six loudspeakers or there are four
loudspeakers in any one room or adjoining outdoor space

There is a cover charge

You allow live music or open-mic performances

You provide a deejay to play music

You allow customers to play their own music devices (such as
iPods) through your sound system

Q. I have one license. Doesn’t that
cover all the music I play? You can—theoretically—license
with just one of the three major companies (BMI, ASCAP and SESAC). But, doing
so limits you to using only those titles to which that one company hold the
copyrights. While each company has a repertoire of over a million pieces of
music, it would be very difficult to play only the music controlled by any one
of the music licensing companies. How would you even begin to keep track?

Q. Aren’t TV, cable and radio stations
already licensed with BMI? The agreements for broadcasts apply to private
use rather than public use. When you broadcast the radio or television in your
establishment, it constitutes a “public broadcast” –a public use.

As a member of the LRA, you are eligible for a 20 percent discount
on licensing services through BMI. LRA members get:

10 percent discount for being a member of the LRA.

An additionally 10 percent discount if you pay for your music
licensing through BMI’s website.

In addition to discounts on licensing by BMI, the LRA has other
member value programs to help you save: